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SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers
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SMART International Symposium for Next Generation Infrastructure: Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travelers

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A presentation conducted by Dr Shuaian Wang, School of Mathematics and Applied Statistics, University of Wollongong. …

A presentation conducted by Dr Shuaian Wang, School of Mathematics and Applied Statistics, University of Wollongong.
Presented on Tuesday the 1st of October 2013

Sydney Harbour Bridge is a key transport infrastructure that connects North Sydney and Sydney Central Business District (CBD). To alleviate the congestion on Sydney Harbour Bridge, NSW Roads and Maritime Services imposes a time of day tolling between $2.5 and $4 on the southbound traffic to Sydney CBD. This study develops mathematical models for formulating the toll pricing problem on Sydney Harbour Bridge considering that different travellers may have different value-of-times (VOTs). The models examine quantitatively the effect of different toll levels on the efficiency (in terms of the total generalized travel time and generalized travel cost of all
travellers) and equity (in terms of the ratio of generalized travel cost among different traveller classes). The proposed models can serve as a useful decision-support tool for NSW Roads and Maritime Services.

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  • 1. ENDORSING PARTNERS Efficiency and equity analysis of toll pricing on Sydney Harbour Bridge with heterogeneous travellers www.isngi.org The following are confirmed contributors to the business and policy dialogue in Sydney: • Rick Sawers (National Australia Bank) • Nick Greiner (Chairman (Infrastructure NSW) Monday, 30th September 2013: Business & policy Dialogue Tuesday 1 October to Thursday, 3rd October: Academic and Policy Dialogue Presented by: Dr Shuaian Wang, School of Mathematics and Applied Statistics , University of Wollongong www.isngi.org
  • 2. Congestion Pricing: Theory and Practice Dr. Shuaian Wang School of Mathematics and Applied Statistics University of Wollongong shuaian@uow.edu.au Dr. Michelle Dunbar, Dr. Mark Harrison SMART Infrastructure Facility, University of Wollongong
  • 3. About my research • • • • • • Container liner shipping Port operations Intermodal freight transportation Public transportation Congestion pricing Highway operations 3
  • 4. Outline • • • • Theory of transport network modeling Theory of congestion pricing Congestion pricing practice Research problems with toll pricing at Sydney Harbour Bridge 4
  • 5. 5
  • 6. 6
  • 7. How to alleviate congestion • Aims to balance the travel demand and supply • Approach 1: Increase supply (e.g. road construction) • Approach 2: Reduce demand (e.g. provide public transport services) 7
  • 8. Advantage of public transport 8
  • 9. Approach 3: Manage demand: Congestion Pricing • Rationale of Using Congestion Pricing – Demand managing: to adjust travel behaviors – Public transport usage – invest toll revenue into public transport infrastructures 9
  • 10. Theory of transport network modeling
  • 11. A Two-Link Example • How many people will travel on road a, and how many travel on road b? Road a, travel time = Number of travellers / 10 1 10 cars travel from 1 to 2 2 Road b, travel time = 1 11
  • 12. User Equilibrium (UE) Traffic Assignment • UE: No traveler can improve her travel time by unilaterally changing routes – Travelers are “selfish” – All the used routes have the same travel time. The travel time of unused routes is not shorter than that of the used routes. – This is what happens in practice. 12
  • 13. User Equilibrium (UE) Traffic Assignment • All travelers travel on road a. • The total travel time of all road users is 10 Road a, travel time = Number of travellers / 10 1 10 cars travel from 1 to 2 2 Road b, travel time = 1 13
  • 14. System Optimal (SO) Traffic Assignment • SO traffic assignment: Determine the flow of road users in the transportation network, so as to minimize total travel time of all road users. – This is the target of transport authority 14
  • 15. System Optimal (SO) Traffic Assignment • The transport authority hopes that 5 people travel on road a, and 5 on road b. • The total travel time would be 5*0.5+5*1=7.5 Road a, travel time = Number of travellers / 10 1 10 cars travel from 1 to 2 2 Road b, travel time = 1 15
  • 16. UE v.s. SO • The total travel time, 7.5 time units, under SO traffic assignment, is 25% shorter than that (10 time units) under UE traffic assignment. • The transportation network is not efficient because road users are selfish. • The transport authority needs to take measures to improve the efficiency. One of the tools is congestion pricing. 16
  • 17. Theory of congestion pricing
  • 18. Value of Time (VOT) • Untolled urban roads: Travel time is 30 min • Tolled highway: Travel time is 25 min, but $5 must be paid to access the roads. • VOT transfers time unit to monetary unit. For higher income population groups, the VOT is generally higher. • Unit of VOT: $/min 18
  • 19. Road Pricing/Congestion Pricing • Suppose that the VOT of road users is $1/min. A toll of $0.5 is imposed on road a. • How would users choose their paths? Road a, travel time = Number of travellers / 10, toll = $0.5 1 10 cars travel from 1 to 2 2 Road b, travel time = 1 19
  • 20. Road Pricing/Congestion Pricing • Users still choose their paths in the selfish manner (UE). • Both roads a and b have 5 users (0.5 min + $0.5, or 1 min). • The total travel time is reduced from 10 to 7.5 Road a, travel time = Number of travellers / 10, toll = $0.5 1 10 cars travel from 1 to 2 Road b, travel time = 1 2 20
  • 21. Practice of congestion pricing
  • 22. 1st Best Pricing • All links (roads) are tolled. • It has been proven that the SO state can be achieved. 22
  • 23. 1st Best Pricing • Resistance from commonwealth. • Expensive to setup: one toll gantry may cost A$1 million. 23
  • 24. 2nd Best Pricing • A subset of links (roads) are tolled • Minimize the total travel time. 24
  • 25. 2nd Best Pricing-toll roads in NSW 25
  • 26. 2nd Best Pricing (Cordon-based pricing) London 26
  • 27. Electronic Road Pricing in Singapore (1998-) 1. Gantry 2. In-vehicle Unit 3. Central Computer System 27
  • 28. Congestion Pricing Schemes in North Europe Trondheim, Norway Stockholm, Sweden A trial in 2006 28
  • 29. Congestion pricing at Sydney Harbour Bridge
  • 30. Congestion pricing at Sydney Harbour Bridge • Traffic relocation effect 30
  • 31. Congestion pricing at Sydney Harbour Bridge • Demand management – When the travel time/cost is too high, some people cancel their trips Trip to ISNGI Travel time = 20 × Number of travellers Value of time = $1/min $100 Trip to have a hair cut $45 31
  • 32. Congestion pricing at Sydney Harbour Bridge Total social benefit: $65 Trip to ISNGI Benefit $60 Travel time = 20 × Number of travellers Value of time = $1/min No toll, Two persons travel and travel time = 40 Benefit $5 Trip to have a hair cut $40 $40 32
  • 33. Congestion pricing at Sydney Harbour Bridge Total social benefit: $80 Trip to ISNGI $30 Benefit Toll collected by the government, which can be invested to public transport infrastructure $50 Travel time = 20 × Number of travellers Value of time = $1/min Toll = $30, One person travels and travel time = 20 $50 $45 Cancel the trip; Benefit $0 Trip to have a hair cut 33
  • 34. Congestion pricing at Sydney Harbour Bridge • Heterogeneous travelers in terms of value of time Source: Australian Bureau of Statistics 34
  • 35. Congestion pricing at Sydney Harbour Bridge • Other factors – Rush issue – Mood 35
  • 36. References • • • • • • Wang, S., Harrison, M., Dunbar, M., 2013. Toll pricing with elastic demand and heterogeneous users, working paper. Wang, S., Meng, Q., Yang, H., 2013. Global optimization methods for the discrete network design problem. Transportation Research Part B, Vol. 50, pp. 42–60. Liu, Z., Meng, Q., Wang, S., 2013. Speed-based toll design for cordon-based congestion pricing scheme. Transportation Research Part C, Vol. 31, pp. 83–98. Meng, Q., Liu, Z., Wang, S., 2012. Optimal distance tolls under congestion pricing and continuously distributed value of time. Transportation Research Part E, Vol. 48, No. 5, pp. 937–957. Liu, Z., Wang, S., Meng, Q., 2013. Toll pricing framework under logit-based stochastic user equilibrium constraints. Journal of Advanced Transportation, accepted on 16 September 2013. Liu, Z., Meng, Q., Wang, S., 2013. Variational inequality model for cordon-based congestion pricing under side constrained stochastic user equilibrium conditions. Transportmetrica A, doi: 10.1080/23249935.2013.821228. 36
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